Thankfully, U.S. investors did not add to the ongoing sell pressure but initiated a sharp recovery today. Once the U.S. woke up and the markets opened, #Bitcoin and the entire crypto market started rebounding.
Certainly, most tokens are still down massively, but compared to the day's early morning, the situation has relaxed slightly.
At the time of writing, Bitcoin is down 6% and Ethereum 8%. Some altcoins are still down double-digits while others have recovered almost completely (e.g. Solana), or have even turned green (Brett).
The most important question is whether the storm is over or if this is just a bull trap before we start the next leg down. Unfortunately, no one can answer this with certainty.
However, here's my view on it:
If Bitcoin can close the day at the current level, it has achieved two important successes:
1️⃣ It showed strength and recovered strongly after its dip. The bulls showed that they haven't capitulated, and there's massive buying pressure below 50k.
2️⃣ Although we had a wick below the channel trendline, BTC did not close below the trendline. As mentioned in today's live session, I consider this super important to continue the pattern.
In my post earlier today, I already highlighted that this was not the first time (and won't be the last time) we have seen such price actions. And yes, we might see another retest of the lower trendline and the 50k levels.
However, I won't bet 1 cent on doom scenarios predicting Bitcoin at <30k (or even 20k).
Conversely, I think two scenarios are possible:
1 - Bitcoin and the market move sideways during the weeks, testing the lower trendline a few times before ascending again.
2 - We will see a V-shaped recovery and pump back to the 60k level quickly.
One thing is for sure: The next few days will remain exciting. Remember the most important rules: 1) No margin trades and 2) Never trade without stop loss!
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